Re: Can anyone take out a life insurance policy on me?
Can anyone take out a policy on me? I have found out that my mother's boyfriend had taken out life insurance policies on myself, my child, 2 of my nephews, and other members of my family with him as the beneficiary. None of us were aware of them and each one has our signatures, forged. Is it legal? What is the law regarding who has a right to take out a life insurance policy on an individual?
Thank you. I look forward to your response.
You cannot take out a life insurance policy on someone unless you have an "insurable interest" in that person. The law is flexible in this regard, but the basic rule is that you have to suffer some kind of economic detriment in the event that the person dies. So, for instance, it is common for business partners to take out life insurance policies on each other, because the business would suffer in the event of one partner's death. In the case of close relatives, it is assumed that you will suffer some economic detriment. The rule is designed to prevent so-called "gambling policies," where wagers on the lives of famous people were placed in the form of insurance policies (that was big back in the early 19th century).
In the case of a mother's boyfriend, I would guess that the economic detriment would be far too remote, especially for the adult children. Consequently, he has no insurable interest in the lives of the people he is attempting to insure. You are right, then, to be concerned. The fact that he apparantly has also forged signatures is an additional cause for alarm. If I were you, I would contact the insurance company (NOT the agent who sold the policies -- he might be in on the scam)* and tell them that you believe your mother's boyfriend is attempting to defraud the company.
*I just re-read one of your subsequent posts: if your mom's boyfriend is the one who wrote these policies, then he is really trying to defraud the insurance company.